F-TPK’s fourth-quarter revenues grow by 72.6%

By Ted Chen,The China Post

TAIPEI, Taiwan — Touch panel maker F-TPK (宸鴻) yesterday announced unprecedented growth with its 2012 fourth quarter revenues reaching NT$61.476 billion, a 72.6-percent growth on the previous quarter.

Propelled by strong seasonal demand for tablet computers, net income reached NT$5.22 billion in the fourth quarter of 2012, up 71.9 percent from the previous quarter. Total revenues for 2012 reached NT$173.659 billion, up 21.1 percent from the previous year. Earnings per share were at NT$42.24, representing yearly growth of 18 percent. Regarding its fourth-quarter product composition in 2012, the company said the volume of panels larger than 7 inches increased from 51 percent to 71 percent of total output, while the amount of panels at less than 7 inches decreased from 46 to 26 percent of total output. In addition, the company’s output of display panels built using the “full-lamination” process increased to 58 percent, up 3 percent from the previous quarter. This output is expected to continue growing as touch-screen equipped notebook computers further proliferate.

The company is aggressively increasing its production capacity for 2013 in anticipation of rising demand for medium-to-large sized panels. It announced NT$30 billion in capital expenditure — double its 2012 figure. By September, the company said its production capacity will have increased by 3.3 million panels as upgrades and expansions to its various plants come on-line. For the first quarter of 2013, the company is expecting a slight decline in performance, citing seasonal fluctuations in demand. In addition, the company indicated that it is expecting slight declines in its revenue contribution from smaller sized panels used in smartphones, with the slack being compensated for by increased demands in larger sized panels for notebook computers.

The company also announced a decreasing reliance on its largest-scale client, which is purported to be Apple, with revenue contribution from its leading client decreasing from 73 percent to 58 percent, a 15 percent drop on last year.

The company concluded that it is predicting revenues between NT$45 and NT$47 billion, down 25 percent, while a maintaining profit margin of 12 percent.